Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

JSE is lagging big time

Reply
stores
Super Contributor
We are resource heavy and the Rand has devalued a bit but gee we are getting punished. Simon will say thats because there are more sellers than buyers. I agree but am confused. Can anyone out there explain?
0 Kudos
46 REPLIES 46
Not applicable
It is what it is. Consider how many individuals out there are right as we speak are wondering 'will it go up ? Will it go down?' and them consider how many are making decisions accordingly. In SA alone - I will hazard a guess and say - probably around 1 million people are making some or other decision regarding the market today? And then you have the foreign capital to consider. Now we are probably talking around 100 million people who are making a buy or sell decision today - either in an ETF, pension fund or direct even. If you have a way of modeling and rationalizing the thought processes of 100 million people - then I suppose your question is valid. Me, and Simon, and others here, we stick to the only truth there is. The price.
0 Kudos
Rams
Super Contributor
Now, you confused him even more!
0 Kudos
Prestonmyhusban
Regular Contributor
Buyers will always equal sellers. It is the force behind the sale that will determine the directional movement.
0 Kudos
THRESHOLD
Super Contributor
Buyers never "equal" sellers at a given price. It is this difference that leads to price movement.
0 Kudos
Rams
Super Contributor
Trade the price...it's easy but people want to know why is it this price ?....is the reason essential to trade the price?...if its so cheap, must I sell or must I buy?..that's what people want to know....
0 Kudos
THRESHOLD
Super Contributor
Buy the fundamentals - it's even easier.
0 Kudos
Rams
Super Contributor
There is a price for buyers and a price for sellers....but the last traded price is the only one that matters....not what people think the price should be and not their reasons for their prices....so there is this price and you decide whether to buy or sell at that price....
0 Kudos
THRESHOLD
Super Contributor
AND this relates to the buyers equals sellers assertion how ...?
0 Kudos
Prestonmyhusban
Regular Contributor
B=S=T B=Buyer Volume S=Seller Volume T=Total Traded Volume
0 Kudos
Prestonmyhusban
Regular Contributor
A Jedi strength flows from the force Yoda
0 Kudos
THRESHOLD
Super Contributor
OF COURSE - that is really just a restatement of: "for every seller there was a buyer." Otherwise there would be no transactions. That does not however MEAN that there is as much buying INTEREST as there is selling interest. It is this difference that moves the share price. This is the supply / demand balance.
0 Kudos
Rams
Super Contributor
Thresh....buyers will equal sellers at last traded price.....if the buyer wants to buy at market, he can still not trade , if there are no sellers at market .....a trade is made up of a buyer and seller....last TRADED price...or am I missing something?
0 Kudos
THRESHOLD
Super Contributor
Incidentally it is not really B=S=T it is PURCHASES=SALES=VALUE T.
0 Kudos
THRESHOLD
Super Contributor
Add up your buyers. Add up your sell side interest. They are almost NEVER equal. If you are trading then the spot price is where you must be. Over time the imbalance between buy and sell side interest will move the price of the share, commodity, whatever! That is an absolute. I cannot believe this is developing into an argument.
0 Kudos
THRESHOLD
Super Contributor
You trader types live in the moment. Hedonists of the market.
0 Kudos
THRESHOLD
Super Contributor
This thread opens with "... Simon will say that's because there are more sellers than buyers... can anyone explain."
0 Kudos
Not applicable
But what happens with a share that has good news overnight and when it opens it is already 10% spike up for instance without a gradual increase to the 10%. Some people put in automated sell orders in place but it just seems as if it jumped them.
0 Kudos
Rams
Super Contributor
And what about LAST traded price.....what's the balance between sellers and buyers.....sure ,sell when there are more sellers than buyers.....but my question is , how do you know that at the last traded price , there are more sellers than buyers....that is , do you go long or short.....we never know for sure....
0 Kudos
Not applicable
The volume tells it all at whatever the price they think is right
0 Kudos